Category: Fraud

Audit Committee Members and CEOs Too Close for Comfort?

A recent study reported in the American Accounting Association’s The Accounting Review suggests that in many cases the relationship between the the top executive and the respective audit committee members may be too comfortable to achieve truly independent oversight. The study found that approximately 40 percent of the 2000 companies analyzed have committee members who are socially …

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Permanent link to this article: https://betweenthenumbers.net/2013/12/audit-committee-members-and-ceos-too-close-for-comfort/

IRS fumbles around $125 Billion in the last decade for incorrect EITC

The Earned Income Tax Credit (EITC) is a refundable tax credit that allows those completing a tax form to get a refund in excess of any tax that might have been paid. The Internal Revenue Service (IRS) is responsible for administering the EITC. Congress originally approved the EITC legislation in 1975. In an August 28 …

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Permanent link to this article: https://betweenthenumbers.net/2013/10/irs-fumbles-around-125-billion-in-the-last-decade-for-incorrect-eitc/

Embezzler’s 401k is off limits to victim employer

Recently, in the matter of Richard Todd Thomas v. James S. Bostwick, the Northern District of California rejected a motion to dismiss, allowing a convicted embezzler to pursue retirement funds retained by his former employer (the victim of his crimes). Thomas was an employee of James S. Bostwick, a Professional Corporation (“Bostwick, Inc.”) from 1996 …

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Fake Prince Rationalizes Embezzlement, Asks for Leniency

A recent article about a convicted Kiwi fraudster demonstrates the fraud triangle (described here) at work.  Hohepa Morehu-Barlow claims his 14 year jail sentence is too harsh given that, while he defrauded the Australian state of Queensland out of more than A$16 million, the judge failed to consider the impact of the theft on the victim, …

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Permanent link to this article: https://betweenthenumbers.net/2013/10/fake-prince-rationalizes-embezzlement-asks-for-leniency/

Questions of Fraud and Gender

Are women being unfairly prevented from engaging in corporate fraud?  That seems to the be conclusion espoused by sociologist Darrell J. Steffensmeier of Pennsylvania State University in his recent study published in the journal American Sociological Review: “Typically, women were not part of'[fraud] conspiracy groups. When women were involved, they had more minor roles and made less profit …

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Permanent link to this article: https://betweenthenumbers.net/2013/09/questions-of-fraud-and-gender/

Swiss Banks No Longer a Haven?

Since 2009, the U.S. Department of Justice has charged more than 30 banking professionals and 68 U.S. accountholders with violations arising from their offshore banking activities, with ongoing investigations proceeding against 14 additional Swiss-based financial institutions.  In an effort to improve this process, the U.S. Department of Justice and the Swiss Federal Department of Finance jointly announced …

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Permanent link to this article: https://betweenthenumbers.net/2013/08/swiss-banks-no-longer-a-haven/

Will Shopping Center Be Held to Estimates In A Letter of Intent?

The California Court of Appeals has reversed a trial court’s decision to dismiss a tenant lawsuit against a shopping center landlord based on differences between the landlord’s estimates of certain charges outlined in a Letter of Intent (“LOI”) as part of lease negotiations versus the amounts charged by the landlord upon occupancy. Prior to entering …

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Fifth Circuit Takes Different Stance on Dodd-Frank Whistleblower Status

The U.S. Court of Appeals for the Fifth Circuit’s decision in Asadi v. G.E. Energy provides a new take on whistleblower protections under the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The Court found that, by definition, a whistleblower must have reported the claimed violation(s) to the U.S. Securities and Exchange Commission (“SEC”) in …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/fifth-circuit-takes-different-stance-on-dodd-frank-whistleblower-status/

SEC Announces New Anti-Fraud Initiatives

The Securities and Exchange Commission (“SEC”) recently announced three new enforcement initiatives in its ongoing fight against fraud: “The Financial Reporting and Audit Task Force dedicated to detecting fraudulent or improper financial reporting, whose work will enhance the Division’s ongoing enforcement efforts related to accounting and disclosure fraud. The Microcap Fraud Task Force targeting abusive trading …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/sec-announces-new-anti-fraud-initiatives/

Use of Internal Personnel for Whistleblower Reporting Costs Employer in Tenth Circuit Case

In Lockheed Martin Corp. v. Brown, No. 11-9524 (10th Cir. Jun. 4, 2013), the Tenth Circuit supported a broad interpretation of the claims that are protected under the anti-retaliation provisions of the Sarbanes-Oxley Act. The Tenth Circuit broadly described the case as follows: “Lockheed Martin Corp. (“Lockheed”) seeks to set aside a decision of the …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/use-of-internal-personnel-for-whistleblower-reporting-costs-employer-in-tenth-circuit-case/